The refinancing replaces unsecured 4.750% notes with secured bank debt, increasing secured leverage but extending maturities and removing a springing maturity risk. Monitor the next quarterly compliance certificate for the impact on total and secured leverage ratios.
Price Chart
Executive Summary
GCI, LLC, a wholly-owned subsidiary of Liberty Capital Corporation, entered into Amendment No. 3 to its credit agreement, adding a new $270 million incremental senior secured term loan facility (Incremental Term A-3 Loans) maturing October 28, 2031. The proceeds, together with borrowings under the existing revolving credit facility, were used to redeem all of the approximately $451 million outstanding 4.750% Senior Notes due 2028. The redemption of the 2028 Notes removes a springing maturity condition that had tied the revolving credit facility and Term A Loan maturities to the 2028 Notes, extending those maturities to their stated dates of March 25, 2030 and March 25, 2031, respectively.
Key Financial Metrics
Key Facts
- GCI entered into Amendment No. 3 to its Ninth Amended and Restated Credit Agreement on October 28, 2026.
- The amendment adds a new $270 million Incremental Term A-3 Loan facility maturing October 28, 2031.
- The Incremental Term A-3 Loans bear interest at SOFR plus a margin of 2.50% to 3.25% depending on total leverage ratio; initial margin is 2.50%.
- Quarterly principal payments on the Incremental Term A-3 Loans are 0.25% of original principal, stepping up to 1.25% if secured leverage ratio exceeds 3.25:1.00.
- Proceeds of the Incremental Term A-3 Loans, together with borrowings under the Amended Revolving Facility, were used to redeem all approximately $451 million of GCI's 4.750% Senior Notes due 2028.
- The revolving credit facility was increased from $450 million to $480 million on October 16, 2026 via Amendment No. 2.
- Full redemption of the 2028 Notes eliminates the springing maturity condition, extending the revolving facility maturity to March 25, 2030 and Term A Loan maturity to March 25, 2031.
- The Incremental Term A-3 Lenders are CoBank ACB ($165M), Bank of America N.A. ($50M), Capital One National Association ($30M), and Wells Fargo Bank National Association ($25M).
Financial Impact
New $270 million term loan facility added; approximately $451 million of 4.750% Senior Notes due 2028 redeemed in full. Revolving credit facility increased by $30 million to $480 million.
Risk Factors
- The new Incremental Term A-3 Loans are secured, increasing the proportion of secured debt in the capital structure.
- Interest rate on the new term loans is floating (SOFR + margin), exposing GCI to rising rate risk, whereas the redeemed notes carried a fixed 4.750% coupon.
- Quarterly amortization of the Incremental Term A-3 Loans begins at 0.25% per quarter and could step up to 1.25% if the secured leverage ratio exceeds 3.25:1.00, increasing mandatory cash outflows.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-119664 |
| Document: tm2628376d1_8k.htm | 0001104659-26-119664 |
| Document: 0001104659-26-119664-index-headers.html | 0001104659-26-119664 |
| Document: 0001104659-26-119664-index.html | 0001104659-26-119664 |
| Document: 0001104659-26-119664.txt | 0001104659-26-119664 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 4d ago | 8-K | $21.51 | awaiting T+20 | awaiting T+20 | $22.48 (+4.51%) |
Oct 9, 2026 23d ago | 8-K | $19.61 | awaiting T+20 | awaiting T+20 | $22.48 (+14.64%) |
Oct 8, 2026 24d ago | SC 13G | $23.59 | awaiting T+20 | awaiting T+20 | $22.48 (−4.71%) |
Oct 8, 2026 24d ago | SC 13G/A | $23.59 | awaiting T+20 | awaiting T+20 | $22.48 (−4.71%) |
Sep 22, 2026 5w ago | Institutional Cluster | $24.34 $20.14 | ▼ −17.26% | ▼ −16.70% | $22.48 (−7.64%) |
Sep 2, 2026 8w ago | 8-K | $26.73 $23.47 | ▼ −12.20% | ▼ −12.04% | $22.48 (−15.90%) |
Jun 29, 2026 17w ago | 8-K | $21.90 $22.92 | ▲ +4.66% | ▲ +5.69% | $22.48 (+2.65%) |
US Market Status
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